On 30 November, the Board of the National Bank of Ukraine adopted Resolution No. 499 “On Amendments to NBU Board Resolution of 25 January 2012 No. 23" amending the Regulation on the Procedure for Building up and Using Provisions by Ukrainian Banks to Cover Possible Losses Arising from Active Banking Transactions.

The move has been necessitated by:

amendments to the laws of Ukraine, in particular, those with regard to the frequency and time frame for compilation and submission of financial statements by economic entities, as well the financial statement format compiled by small businesses;

amendments to the NBU regulations on accounting, in particular, those with regard the assessment of overdrafts and credit lines under which the effective interest rate and discounted cash flow method is not applied. 

The above said Resolution establishes the procedure for evaluating the debtor’s (public sector entity’s) financial standing, improves criteria and conditions for accepting collateral under lending transactions when calculating the provision, expands the list of eligible collateral.